39. What is the correct journal entry to record a favorable materials mix variance assuming all
material variances are recognized when the direct materials are issued to production?
40. What is the correct journal entry to record direct labor when the actual labor mix is
favorable and the total standard hours allowed is greater than the total actual hours worked?
41. The Trey Company experienced a $100,000 shortfall in sales revenues for the year. Top
management is quite disturbed about this and has decided to use variance analysis in assigning
the responsibility for the decline. Which of the following variances would be most within the
control of the marketing department?
42. Which of the following factors should not be considered when deciding whether to
investigate a variance?
17–24
43. There are several reasons why actual results differ from standards. Which of the following
does not represent a reason why a variance might occur?
44. The Heavenly Gifts Company, a maker of Holiday novelties, needs your help immediately.
The company’s accountant resigned without leaving adequate records or explanations for what
she did. In reviewing the records, you find the following information for May:
You find a copy of the budget which shows that materials were budgeted at $0.60/unit. You know
that the materials price variance is recorded at the time of purchase and you find some
handwritten notes among the accountant’s work papers, which indicate the following:
What was the total actual cost of the direct materials purchased during May?
17–25
45. The Heavenly Gifts Company, a maker of Holiday novelties, needs your help immediately. The
company’s accountant resigned without leaving adequate records or explanations for what she
did. In reviewing the records, you find the following information for May:
You find a copy of the budget which shows that materials were budgeted at $0.60/unit. You know
that the materials price variance is recorded at the time of purchase and you find some
handwritten notes among the accountant’s work papers, which indicate the following:
What was the total standard cost of direct materials purchased during May?
46. The Heavenly Gifts Company, a maker of Holiday novelties, needs your help immediately.
The company’s accountant resigned without leaving adequate records or explanations for what
she did. In reviewing the records, you find the following information for May:
You find a copy of the budget which shows that materials were budgeted at $0.60/unit. You know
that the materials price variance is recorded at the time of purchase and you find some
handwritten notes among the accountant’s work papers, which indicate the following:
What was the total standard cost of direct materials allowed during May?
47. The Wilbur Company gathered the following information for the year.
What is the total sales mix variance?
48. A machine distributor sells two models, basic and deluxe. The following information
relates to its master budget.
Actual sales were 7,000 basic models and 2,800 deluxe models. The actual sales prices were the
same as the budgeted sales prices for both models.
What is the sales activity variance for the basic model?
49. A machine distributor sells two models, basic and deluxe. The following information
relates to its master budget.
Actual sales were 7,000 basic models and 2,800 deluxe models. The actual sales prices were the
same as the budgeted sales prices for both models.
Is the sales activity variance for the basic model favorable or unfavorable?
50. A machine distributor sells two models, basic and deluxe. The following information
relates to its master budget.
Actual sales were 7,000 basic models and 2,800 deluxe models. The actual sales prices were the
same as the budgeted sales prices for both models.
What is the sales activity variance for the deluxe model?
51. A machine distributor sells two models, basic and deluxe. The following information
relates to its master budget.
Actual sales were 7,000 basic models and 2,800 deluxe models. The actual sales prices were the
same as the budgeted sales prices for both models.
Is the sales activity variance for the deluxe model favorable or unfavorable?
52. A machine distributor sells two models, basic and deluxe. The following information
relates to its master budget.
Actual sales were 7,000 basic models and 2,800 deluxe models. The actual sales prices were the
same as the budgeted sales prices for both models.
What is the sales mix variance for the basic model?
53. A machine distributor sells two models, basic and deluxe. The following information
relates to its master budget.
Actual sales were 7,000 basic models and 2,800 deluxe models. The actual sales prices were the
same as the budgeted sales prices for both models.
Is the sales mix variance for the basic model favorable or unfavorable?
54. A machine distributor sells two models, basic and deluxe. The following information
relates to its master budget.
Actual sales were 7,000 basic models and 2,800 deluxe models. The actual sales prices were the
same as the budgeted sales prices for both models.
What is the sales quantity variance for the basic model?
55. A machine distributor sells two models, basic and deluxe. The following information
relates to its master budget.
Actual sales were 7,000 basic models and 2,800 deluxe models. The actual sales prices were the
same as the budgeted sales prices for both models.
Is the sales quantity variance for the basic model favorable or unfavorable?
56. A machine distributor sells two models, basic and deluxe. The following information
relates to its master budget.
Actual sales were 7,000 basic models and 2,800 deluxe models. The actual sales prices were the
same as the budgeted sales prices for both models.
What is the sales mix variance for the deluxe model based?
57. A machine distributor sells two models, basic and deluxe. The following information
relates to its master budget.
Actual sales were 7,000 basic models and 2,800 deluxe models. The actual sales prices were the
same as the budgeted sales prices for both models.
Is the sales mix variance for the deluxe model favorable or unfavorable?
58. A machine distributor sells two models, basic and deluxe. The following information
relates to its master budget.
Actual sales were 7,000 basic models and 2,800 deluxe models. The actual sales prices were the
same as the budgeted sales prices for both models.
What is the sales quantity variance for the deluxe model?
59. A machine distributor sells two models, basic and deluxe. The following information
relates to its master budget.
Actual sales were 7,000 basic models and 2,800 deluxe models. The actual sales prices were the
same as the budgeted sales prices for both models.
Is the sales quantity variance for the basic model favorable or unfavorable?
60. The XYZ Company had the following expectations for the year:
What is XYZ’s market share variance?